Playtika Board Decides Against Sale, Company to Remain Independent
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Israeli mobile game developer Playtika will remain an independent public company after its board of directors decided against a sale. The company's strategic review concluded that independence best serves long-term shareholder value. Despite recent stock lows, Playtika reported third-quarter revenue of $674 million and a record $252 million in adjusted EBITDA, while reaffirming its full-year financial forecasts.
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- Playtika's board has decided the company will remain independent and not pursue a sale.
- The decision aims to ensure long-term value growth for the company's shareholders.
- This is the second time Playtika has explored a sale without completing a transaction.
- Playtika's stock recently hit a historic low, with a market cap of $807 million.
- The company reported third-quarter revenue of $674 million and record adjusted EBITDA of $252 million.
- Playtika reaffirmed its full-year revenue forecast of $2.75-$2.85 billion.
The board of directors for Israeli mobile game developer Playtika has concluded its strategic review and decided the company will continue to operate as an independent, publicly traded entity. The board believes this path offers the best route for long-term value creation for shareholders. This decision follows a six-month process initiated when Playtika hired Morgan Stanley to explore options for enhancing company value, which was widely interpreted as a search for a buyer. This marks the second time Playtika has explored a sale without reaching a deal.
Last week, Playtika's stock hit a historic low, with its market capitalization standing at $807 million prior to a recent increase. In the third quarter, the company reported revenue of approximately $674 million, showing little change year-over-year, contrary to analyst expectations of a 1.1% decline. Direct-to-consumer sales, bypassing app stores, saw a significant 31.4% year-over-year increase. Net profit rose by 3.3% to $40.4 million, while adjusted EBITDA grew 15.9% to a record $252 million, largely due to reduced marketing expenses. The company ended the quarter with $595 million in cash.
Playtika reaffirmed its full-year financial outlook, projecting revenue between $2.75 billion and $2.85 billion, and adjusted EBITDA between $750 million and $790 million.